Answer Happy

Now suppose that demand curves for apple in Brooklyn are given by the following demand function: Qa = 50 - 12P+ 6Ps+0.001Y where Qa: quantities demanded in tons P: price of apple in dollars per kg Ps: price of pear in dollars per kg Y: average monthly income in dollar 3) What is the income elasticity of demand if Qd=100 and Y = $5000 at the competitive equilibrium? Explain the elasticity result and based on the result you have explain what type of good apple is? 4) What is the cross-price elasticity of demand if Qd= 30 and Ps = $4.00 at the competitive equilibrium? Explain the elasticity result and based on the result you have explain what type of goods apple and pear are?